Department of Infrastructure Development Annual Report 2021-2022

ANNUAL REPORT 2021 | 2022

The Preferential Procurement Policy Framework Act (Act 5 of 2000) To give effect to section 217(3) of the Constitution by providing a framework for the implementation of the procurement policy contemplated in section 217(2) of the Constitution; and to provide for matters connected therewith. Section 217(3) of the Constitution allows for the procurement policy that provides for categories of preferences in allocating contracts and the protection and advancement of persons, or categories of persons, disadvantaged by unfair discrimination. The Act requires organs of State (those responsible for procurement and elected leaders, e.g. accounting officers and councillors) to determine their preferential procurement policy and to implement it within a framework. The framework provided by the Act requires that a preference point system must be followed: • For contracts with a Rand value above a prescribed amount, a maximum of 10 points may be allocated for specific goals, provided that the lowest acceptable tender scores 90 points for price. • For contracts with a Rand value equal to or below a prescribed amount, a maximum of 20 points may be allocated for specific goals, provided that the lowest acceptable tender scores 80 points for price. The Competitions Act (Act 89 of 1998) The Act prohibits the following between parties: • Any restrictive horizontal practice that prevents or lessens competition in markets or involves fixing a purchase or selling price or any other trading conditions; dividing markets by allocating customers, suppliers, territories, or specific types of goods or services; or collusive tendering. • Any restrictive vertical practice that substantially prevents or lessens competition in a market or establishes a minimum resale price. State Information Technology Agency Act (Act 88 of 1998) Empowers the State Information Technology Agency (SITA) to act as a procurement agency in respect of information technology requirements in accordance with the State Procurement Policy regarding the provision of data processing services; training; application software development and maintenance services; technical, functional and business advice and support; and related management services. 7.4 LEGISLATION GOVERNING CONSTRUCTION INFRASTRUCTURE DELIVERY Construction Industry Development Board Act, 2000 (Act No. 38 of 2000) The Act provides for the establishment of the Construction Industry Development Board (CIDB) to implement an integrated strategy for the reconstruction, growth, and development of the construction industry. The CIDB Act (2000) mandates the Board to establish and maintain a National Register of Contractors (NRoC) and a National Register of Projects (NRoP). The Gauteng DID will be required to appoint CIDB registered contractors on all its infrastructure development and maintenance projects. All projects above a set threshold (currently R200, 000) will also have to be registered with the CIDB. National Building Regulations and Building Standards Act, 1977 (Act 103 of 1977) The Act provides for the promotion of uniformity in the law relating to the erection of buildings in the areas of jurisdiction of local authorities, and for the prescribing of building standards.

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DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT